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Property

Real estate inventory down in Q2

Released at: 16:12, 27/07/2017

Real estate inventory down in Q2

Illustrative image (Source: cafef.vn)

Inventories down nearly 12% in second quarter, according to Vietnam Real Estate Association.

by Ngoc Lan

Total real estate inventory in Vietnam stood at about VND27.3 trillion ($1.2 billion) as at the end of the second quarter of 2017, down VND3.6 trillion ($167 million), or nearly 12 per cent, year-on-year, according to a report from the Vietnam Real Estate Association (VnREA).

The report noted that the higher inventory is in residential land, with more than 3.3 million sq m worth VND13 trillion ($593 million), followed by low-rise housing with 3,447 units worth VND7.268 trillion ($330 million). Apartment inventory was 3,200 units worth VND4.5 trillion ($208 million), while commercial land totaled 648,139 sq m, worth VND2.48 trillion ($112 million).

The Housing and Real Estate Market Management Agency at the Ministry of Construction said that the process of cutting inventories has slowed and are primarily in projects far from city centers with inadequate infrastructure.

Hanoi and Ho Chi Minh City have the largest inventories, accounting for nearly 40 per cent of value.

The report also revealed that in the second quarter, more than 6,700 apartments were introduced for sale in Hanoi, mostly in the districts of Bac Tu Liem, Nam Tu Liem, Ha Dong, Hoang Mai, and Thanh Tri, accounting for 63 per cent of total new supply.

The mid-end apartment segment has a large supply, with many projects conducting sales in the second quarter, such as T&T Riverview, Viet Hung Green Park, Ecolake View, Imperial Plaza, An Binh City, FLC Tay Mo, Gelexia Riverside, and Riverside Garden.

Total apartment transactions in the second quarter in Hanoi were for 5,417 units on a total of 406,240 sq m and worth VND11.3 trillion ($517 million), with the affordable housing segment leading the way, accounting for 55 per cent of total transactions.

In Ho Chi Minh City, total apartment transaction in the first six months of 2017 reached 9,827 units, equivalent to 751,385 sq m. Total transaction value reached VND25.88 trillion ($1.17 billion) with the mid-end segment leading the way, accounting for 47 per cent of total transactions.

Projects include The Art, Citisoft, LuxGarden, Celadon City, Green Town, Binh Tan, Sun Square, Conic Skyway Residence, and The Golden Star. High-end projects initially introduced included Sophia Garden, Lancaster Lincoln, Sensation, and Republic Plaza.

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